MONTREAL, June 21, 2016 /PRNewswire/ --
Visible Gold in Grab Samples Further Increases Expectations for Property's Potential
ALGOLD RESOURCES LTD. (ALG: TSX-V - the "Corporation") is pleased to announce the first mineral resource estimate in accordance with the Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") for its recently acquired Tijirit Property ("Tijirit" or "the Property") in Mauritania. The 100%-owned Tijirit project, which encompasses an area of more than 1,000 km2, is situated approximately 25 kilometers southeast of Kinross' Tasiast gold mine.
The resource estimation was prepared by SGS Canada Inc. - geological group Geostat ("SGS Geostat") with an effective date of June 15, 2016, using results from 294 reverse circulation holes ("RC") totalling 37,533 meters, 23 diamond drill holes ("DDH") totalling 3,813.08 meters and 16,239 meters of trenching carried out on the Property by past operators Shield Mining and Gryphon Minerals from 2009 to 2012. The supporting NI 43-101 Technical Report will be posted on SEDAR at http://www.sedar.com no later than 45 days after the date of this release.
None of Algold's recent exploration work, the 10,000-meter RC program included, has been taken into account in the technical report. Algold expects to publish an updated NI 43-101 resource estimate in the latter part of 2016 that will include results from the current program.
This report summarizes results obtained by previous operators and present the current mineral resources.
- Measured and indicated resources of 28,930 ounces at a grade of 1.75 g/t Au and inferred resources of 241,560 ounces at a grade of 1.71 g/t Au at a cut-off grade of 1.0 g/t Au
- Measured and indicated resources of 27,630 ounces at a grade of 1.82 g/t Au and inferred resources of 226,650 ounces at a grade of 1.79 g/t Au at a cut-off grade of 1.05 g/t Au
- Resources by zone are shown in the following tables, at cut-off grades of 1.00 g/t Au and 1.05 g/t Au. Figure 1 show the Wire Frame over the mineralised zones on a Landsat Imagery of Tijirit.
Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability. This disclosure does not include economic analysis of the mineral resources.
Table 1: Tijirit maiden resources, 1.0 g/t Au cut-off
Au Gold Zone Category (g/t) Tonnage Ounces Eleonore Indicated 3.62 51,000 5,980 Sophie I - II Measured 1.79 28,000 1,600 Sophie I - II Indicated 1.57 216,000 10,900 Sophie III Indicated 1.13 29,000 1,040 Lily Indicated 1.54 189,000 9,410 Total Measured & Indicated* 1.75 513,000 28,930 Eleonore Inferred 3.26 188,000 19,650 Sophie I - II Inferred 1.96 1,635,000 103,180 Sophie III Inferred 1.10 320,000 11,270 Lily Inferred 1.48 2,258,000 107,470 Total Inferred* 1.71 4,401,000 241,560
* Totals may not add up due to rounding.
Table 2: Tijirit maiden resources, 1.05 g/t Au cut-off
Au Tonnage Au Zone Category (g/t) (t) Ounces Eleonore Indicated 3.67 51,000 5,960 Sophie I - II Measured 1.86 26,000 1,530 Sophie I - II Indicated 1.61 200,000 10,380 Sophie III Indicated 1.16 23,000 870 Lily Indicated 1.59 174,000 8,900 Total Measured & Indicated* 1.82 474,000 27,630 Eleonore Inferred 3.28 186,000 19,590 Sophie I - II Inferred 2.03 1,522,000 99,460 Sophie III Inferred 1.14 192,000 7,020 Lily Inferred 1.53 2,050,000 100,580 Total Inferred* 1.79 3,949,000 226,650
* Totals may not add up due to rounding.
- The actual resources model does not capture the high-grade potential of the Eleonore zone, but rather illustrates, at this point in time, the considerable tonnage and relatively low-grade Lily zone.
- The high-grade nature of the gold bearing quartz vein of the Eleonore zone is expected to significantly increase the overall grade of the deposit by adding quality ounces.
Increasing Potential of the Tijirit Project
"For quite some time Algold has believed in Tijirit's potential, and we are pleased to report that recent geological work has significantly enhanced our comprehension of its gold mineralisation and further increased our confidence that a significant gold deposit may be uncovered on the property," stated Francois Auclair, Algold's President and Chief Executive Officer.
Historical drilling over the Eleonore zone resulted in a number of high-grade intersections, including 6 m @ 17.63 g/t Au (ERC4) and 4 m @ 4.22 g/t Au (12TRC138). These historical results have been heightened by a rock chip sampling program over a large area, following recent work done by Algold geologists and field workers who discovered the presence of very high grade gold quartz veining over a strike length of more than three kilometers (reference Algold's press release dated May 19, 2016). (Figure 2)
Rock Chip Sampling
Sixty-eight (68) rock chip samples from the Tijirit property, including 33 from Eleonore, 11 from Sophie I and II and 24 from other potential targets have been sent for analysis. Assays are currently pending and expected shortly. The visible gold quartz vein samples shown previously (Algold's press release dated May 19, 2016) have not been included in this batch of samples.
Resources Modeling and Estimation
The database contains 317 drillholes and 197 trenches with 43,615 assay results. (Details are provided in the table below.)
Hole Types Number of Sum of Number of Sum of Assayed Drillholes Length (m) Assays Length (m) DDH 23 3,813.08 3,764 3,763.93 RC 294 37,533.00 33,145 37,514.00 Trenches 197 16,239.00 6,706 10,656.00 Total 514 57,585.08 43,615 51,933.93
A modeling cut-off grade of 0.3 g/t Au and minimum thickness of two meters were used to delineate mineralised volumes. The 1,144 two-meter composites were capped at grades varying between 2.5 g/t Au and 16 g/t Au based on local extreme grades. Only nine composites were capped. The gold loss is approximately 15% for the 1 g/t Au cut-off resource. Densities are based on 413 readings from DDH holes. A density of 2.00 t/m3 was used for saprolite, 2.7 t/m3 was used for fresh rock in the Lily zone and 2.8 t/m3 was used for fresh rock in the other zones.
The block model has a block size of 2 x 2 x 2 meters. Estimation was done by inverse distance squared with ellipsoid influenced distances. A total of 40 separate volumes were estimated with 40 composite sets. Two estimation passes were used with ellipsoids of 75 x 75 x 25 meters and 150 x 150 x 50 meters. The first pass uses a minimum of four and a maximum of seven composites, with a limit of two per drillhole. The second pass uses a minimum two and a maximum of seven composites, with a limit of two per drillhole except for Eleonore (E) and Sophie III (C) with a minimum of one. The smoothing of the estimation is adequate. The measured and indicated categories have been outlined by hand on longitudinals based on drilling density. Drilling every 40 meters was classified as indicated and drilling every 30 meters was classified as measured. The remainder is inferred with interpolation up to 200 meters and limited extrapolation.
The SGS Genesis software was used for the modeling and estimation. Table 1 shows the base case resource with a cut-off grade of 1.00 g/t Au. Table 2 shows the effect of raising the cut-off grade to 1.05 g/t Au. Some whittle optimized open pits have been prepared, but are not considered for this maiden resource estimate. The base case resource extends from surface to a depth of 320 meters with 90% of it extending from surface to a depth of 210 meters.
Acquisition of Properties from Gryphon
In connection with the Corporation's exercise of its option on the Tijirit and Akjout properties granted by Gryphon Minerals Limited, announced on March 11, 2016, Algold incurred advisory fees of C$250,000. As announced on May 31, 2016, 1,250,000 common shares of the Corporation were issued in lieu of said advisory fee.
Algold Retains the Services of Renmark Financial Communications Inc.
Algold has retained the services of Renmark Financial Communications Inc. ("Renmark") to support its investor relations activities for an initial term of three months commencing June 1, 2016 subject to the approval of the TSX Venture Exchange. The initial term may be extended by mutual consent and the Corporation has agreed to pay C$5,000 per month in consideration for their services.
Renmark Financial Communications Inc. does not have any interest, directly or indirectly, in Algold Resources Inc. or its securities, or any right or intent to acquire such an interest.
Algold Resources Ltd. is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
Algold is the operator of all of its exploration licenses in Mauritania. Algold owns 100% of the Tijirit and Akjout properties, which were acquired from Gryphon Minerals (Australia) through a transaction completed earlier in 2016. Algold owns 90% of the Kneivissat property, while the Legouessi property is being managed through a 51% earn-in interest agreement with Caracal (Electrum Group Companies). Algold can earn up to a 90% interest in the Legouessi exploration permit (reference Algold's press release dated October 10, 2013 for more details), however, Caracal has the right to participate in the joint venture at either 51% or 75%, by funding its share of expenditures.
Quality Assurance / Quality Control (QA/QC)
Analytical work for soil geochemical samples and rock chips samples is being carried out at the independent ALS Laboratories Ltd. in Loughrea, Co. Galway, Ireland, an ISO 17025 (2005) certified laboratory. Samples are stored at Algold's field camps and put into sealed bags until delivered by a geologist to the ALS preparation laboratory in Nouakchott, Mauritania, where samples are sieved and prepared for shipping. Until the end of 2015, samples were analysed at the ALS facility in Bamako, Mali. Since early 2016, samples have been analysed at ALS in Ireland. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70% passing a 2 mm (Tyler 9 mesh, US Std. No.10) screen. A split of up to 1,000 g is taken and pulverized to better than 85% passing a 75 micron (Tyler 200 mesh) screen, and a 50-gram split is analysed by fire assay with an AA finish. Blanks, duplicate and certified reference material (standards) are being used to monitor laboratory performance during the analysis.
All of the results and press releases related thereto have been reviewed for accuracy and to ensure that they are in accordance with National Instrument 43-101 by André Ciesielski, DSc. PGeo, Lead Consulting Geologist and Qualified Person, Algold Resources Ltd.
Yann Camus, P.Eng., of the independent firm SGS Canada Inc. - geological group Geostat is the qualified person under NI 43-101 standards who supervised the preparation of the resource estimate and approved all resource-related material in this press release. Yann Camus has visited the property from April 16 to 20, 2016, for current personal inspection requirements. All information supporting the resource estimation was verified for any inconsistencies. There was no limitation on the verification process.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING INFORMATION
This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward looking statements (or forward-looking information). The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Corporation's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at http://www.sedar.com . These forward looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.
For further information, please contact:
Algold Resources Ltd.
1320, boul. Graham, bureau 132, Mont-Royal, Québec, H3P 3C8, http://www.algold.com
François Auclair M.Sc., PGeo
President & CEO
Yves Grou, CPA CA
Executive Vice Chairman